Motorola’s revenue losses continue, reports $384m operating loss in Q4 2013

January 30, 2014

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Yesterday many of us were hit hard by the bombshell announcement that Google plans to ditch Motorola and sell it to Lenovo for $2.91 billion. One day later, and we get a closer look at exactly how Motorola is doing now that the dust has settled and Motorola has had at least a little time to attempt to win folks over with the Moto X, Moto G, and the latest Verizon Droids.

The results for Q4 2013? Not so great, though we can’t say we are too terribly surprised. For Q4 2013 Motorola posted $1.24 billion in revenue, down from $1.51 billion in Q4 of 2012. This led to a $384 million operating loss, versus a $152 million loss a year ago. For those keeping score, that’s total losses of $1.245 billion in Google’s 2013 fiscal year.

It's starting to look like ditching Motorola really is a good move for Google, especially since they are keeping some of the most vital pieces for themselves.

Now to be fair, Motorola has had to spend quite a bit to ‘turn itself around’ in terms of image, branding and setting up its new Moto Maker direction. One could argue that, if they were to have stayed under Google, 2014 could prove to be a much better year. But that’s not what is happening.

Instead, Lenovo will be taking the helm, and will hopefully navigate Motorola successfully into the future. It still remains to be seen what changes Lenovo will make once the Lenovo-Google deal closes, but we doubt that the company is willing to accept a continued loss of a billion or more a year.

Between the news that Nest will reportedly be Google’s core hardware team, Motorola’s continued losses and the reports that Samsung and Google have formed some kind of pact, the pieces are starting to fit together. It’s also starting to look like ditching Motorola really is a good move for Google, especially since they are keeping the most vital pieces for themselves.

Many of us are sad to see the relationship end and concerned for the future of devices like the Moto X and Moto G, but Google clearly has a plan in mind, even if it we aren’t completely sure were it will take Android at the moment.

What do you think of Motorola’s Q4 2013 report? Surprised to see that they are continuing to bleed money? Do you feel that ridding itself of Motorola is the right move for Google? Let us know what you think in the comments.

Comments

  • Shark Bait

    Google have proven they will only have the best, so they cut the crap that keeps losing them billions!

    (Edit: Actually I don’t think moto is crap, but you get my point?)

    • AussieGreek

      But you said Google turned Motorola around now you’re saying Motorola is crap……oh the hypocrisy.

      • tocsin

        Oh :0 Wog

        • Jesus

          Weak man, resorting to racial slurs when you’ve nothing else to say.

      • Shark Bait

        Ok, you totally don’t get my points.

        What I mean is google had completely revitalised the Motorola brand. It was a fresh attractive company again, who made 2 very good phones , and even build a bit in America. This makes people like a company, and want to but from a company, hence turned around. But still not making profit ………yet!

        So google, being ruthless and thinking they are the best , though “you know what, enough is enough now” used it as leverage over Samsung and then quit the phone yame .

  • Jayfeather787

    I think it was the right move for google. They made the Moto G priced at 100 bucks, which was 20 dollars less than what it actually cost to be built, so they wasted a little money there. Motorola did not make Google that much money, and it was the right decision to sell Motorola. Now buy HTC!!

  • rogerinvegas

    It’s definitely a good thing, Motorola was using more than it was putting out, the moto x was all hype with Google’s name behind it, even that couldn’t save a phone with sucky specs (like only 720 res. screen) I’m not surprised they discounted it so much. Google is right by selling that waste basket of a company. They are gonna do wonders with Samsung though, a company that isn’t a failure!!

  • AussieGreek

    Looks like the bamboo on a crapy mid spec expensive phone was not the right direction for the company.

    • apianist16

      That’s why their profit was going up?

  • ihatehipsternerds

    If you want to make money in the tech industry never ever listen to the
    hipster nerds. Motorola made that mistake trying to please hipster nerds
    and look what they achieved, a $384 million operating loss. Most of
    the general public (95%) don’t care about stock android or roms. All
    they want are those gimmicks which Samsung give them and that is why
    Samsung is pulling billions in profits because they listen to the
    general public than hipster nerds.

    • MadCowOnAStick

      says the guy whose username is ihatehipsternerds
      yeah kinda true, but samsung does so much marketing crap which is also why

      • ihatehipsternerds

        that’s the thing Samsung advertise their gimmicks because there is nothing to advertise on stock. HTC should have advertised Zoe futures to the fullest but they only advertised boom speakers which most people don’t care about except for school kids who will want everybody on the train or bus to hear what they’re playing on their phones, while most adults will just use headphones.

        • Jesus

          Zoe is BS. Samsung’s got some useful stuff like multi window and smart stay.

          • Techloverihatehipsternerds

            Some people may love Zoe stuff but Htc choose not to showcase them. Maybe they didn’t have confidence with their features.

        • AussieGreek

          You hit the nail on the head. When I show people the Zoe feature they freak out. The truth is my Nexus 7 can’t do everything my HTC one can do and like I said before if it wasn’t for htc in the beginning and Samsung now Android would be nothing.

    • Luka Mlinar

      The problem was hireing hipster nerds to run the company. Dennis wanted a second in comand who is even more hipster than him so he got Regina.

  • Tanner Hoyt

    Google sold Motorola to Lenovo, and now one of the most iconic American brands of all time is either dead or it will become a Chinese brand. Google’s ad campaign for the Moto X touted it as being the first smartphone fully designed and assembled in the USA. The
    Moto X would be produced by a factory in Fort Worth, Texas, bringing thousands of new jobs to the city. Google just gave all of that up. They used patriotism as a selling point.

    Thousands of people will now lose their jobs. Google’s “Don’t be evil” mantra is nothing but a lie. This is evil. Rather than be concerned for those who already bought a Moto X, or for
    the people who will lose their jobs over this, they are concerned only with themselves.

    P.S. No, I’m not an American exceptionalist, however, I think that they used patriotism as a ploy to gain sells and then threw that out the window.

    • apianist16

      Just cause Lenovo bought them doesn’t mean that they (Moto) are necessarily leaving the U.S. and that all customer support will end. Let’s what happens before we start throwing out harsh judgments.

      • Tanner Hoyt

        True, at least not immediately. However, I doubt Lenovo will let Motorola be based in the US. Either way, I think it was an incredibly stupid move by Google.

        • apianist16

          They might, especially if this is going to be the formal introduction of Lenovo to the U.S. market. “Made/assembled in the U.S.” will help them to woo the market, and gain them some recognition.

  • jkwalter2000

    I hope that Lenovo doesn’t force its crappy UI into Motorola, and I really like the moto g, I wonder how long it will be available, or if it will get updates.

  • Luka Mlinar

    I still can’t believe Motorola was reduced to a lower price than a brand new company that makes thermostats. It sounds like a joke wen you say it. Lenovo is not who i would have hoped to take over Motorola but it could always be worse. Microsoft could have taken it and killed it like Nokia.
    Also here’s hoping Lenovo do the right thing and fire Woodside. I personaly wouldn’t give that dude a managerial position and local McDonald’s.

  • asd

    Of course your gonna have loses if for example the moto x was only for the US market and also Moto need to have had more marketing because there are many people who I know who havnt heard of their new products